What Maximum Annual Withdrawals Will a $200,000 Fund Earning 5

question 145

Short Answer

What maximum annual withdrawals will a $200,000 fund earning 5% compounded annually sustain for 20 years if the withdrawals are made: a) At the beginning of each year b) At the end of each year

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Definitions:

Irrevocable

Not able to be changed, reversed, or recovered; final and unalterable.

Revocation

The act of cancelling or withdrawing something, such as an offer, license, or privilege.

Indefinite Offer

An offer in a contract that lacks specific, essential details, making it unclear or not concluded.

Material Terms

Essential provisions or clauses in a contract that are crucial to the performance of the agreement and integral to the contract’s objectives.